These are certain measures you need to follow to minimize your chances of getting a notice:
1) Always file your returns on time and correctly: This is the basic precaution you need to take to ensure 100% compliance with the law. Make sure you file the return correctly, and all the details while filling the returns match the details already available with the IT department.
2) Submit ITR V to Centralized Processing Centre (CPC) Bangalore: Your tax return filing is
only considered complete when the ITR V reaches the CPC. Just uploading returns online is not enough; make sure you get a confirmation of its receipt from the CPC. Please follow the dos and don'ts of sending the ITR-V to the CPC correctly.
3) Check your form 26AS (Tax Credit Statement): '26AS' gives the details of the 'TDS' deposited on your behalf. You should check all the TDS payments duly credited to you or get them rectified. You can view them though NSDL or on the IT department’s website, or even through your bank’s online portal.
4) Mismatch in income and expenses/investments: If your income in the year was Rs 10 lakh, and you invested Rs 25 lakh, you will need to justify the source of the used funds; the same applies to expenses also.
5) Gifts/money credited to your account: If you have funds credited to your account out of gifts or loan from relatives/ friends, you need to maintain documentary evidence for it. You may also need to report these transactions at few instances.
6) Declaring “exempt” income: Even though few incomes are exempt from taxation, you still need to declare it while filing your returns.
7) Updating PAN details: Keep updating any changes in your pan data like address/surname change after marriage, etc.
8) Pay advanced tax: If you are liable to pay advance tax, then make sure you pay it as per its schedule and deadline.
9) Form 15H or 15G: Use 15H/15G instead of claiming refund. Submit this at financial institutions like banks, to prevent them from deducting TDS on your investments with them, in case your income is below the taxable limit.
10) Avoid high value transactions: The department gets information of all your high value transactions from the concerned institution, and the chances of you coming under scrutiny increases. Avoid these transactions wherever possible and plan them carefully and legally.
1) Always file your returns on time and correctly: This is the basic precaution you need to take to ensure 100% compliance with the law. Make sure you file the return correctly, and all the details while filling the returns match the details already available with the IT department.
2) Submit ITR V to Centralized Processing Centre (CPC) Bangalore: Your tax return filing is
only considered complete when the ITR V reaches the CPC. Just uploading returns online is not enough; make sure you get a confirmation of its receipt from the CPC. Please follow the dos and don'ts of sending the ITR-V to the CPC correctly.
3) Check your form 26AS (Tax Credit Statement): '26AS' gives the details of the 'TDS' deposited on your behalf. You should check all the TDS payments duly credited to you or get them rectified. You can view them though NSDL or on the IT department’s website, or even through your bank’s online portal.
4) Mismatch in income and expenses/investments: If your income in the year was Rs 10 lakh, and you invested Rs 25 lakh, you will need to justify the source of the used funds; the same applies to expenses also.
5) Gifts/money credited to your account: If you have funds credited to your account out of gifts or loan from relatives/ friends, you need to maintain documentary evidence for it. You may also need to report these transactions at few instances.
6) Declaring “exempt” income: Even though few incomes are exempt from taxation, you still need to declare it while filing your returns.
7) Updating PAN details: Keep updating any changes in your pan data like address/surname change after marriage, etc.
8) Pay advanced tax: If you are liable to pay advance tax, then make sure you pay it as per its schedule and deadline.
9) Form 15H or 15G: Use 15H/15G instead of claiming refund. Submit this at financial institutions like banks, to prevent them from deducting TDS on your investments with them, in case your income is below the taxable limit.
10) Avoid high value transactions: The department gets information of all your high value transactions from the concerned institution, and the chances of you coming under scrutiny increases. Avoid these transactions wherever possible and plan them carefully and legally.
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